Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-05-21
Southern Pacific Official Before the
Interstate Commission,

Interstate Commission.
WASHINGTON, May GOTH. c. Stubs,
General Traffic Manager of the Southern
Pacific Railroad, was the first witness be-
fore the Interstate Commerce Commission,
and was examined by Tweed, counsel for
the railroad. In support of the application
to have the temporary order suspending
the operation of Section of the law made
permanent, having referred to the traffic
over the Central Pacific, the Chairman in
CURED how it happened that the witness
had anything to do with the Central Pa
biffc. He replied that the Central Pacific
was leased line, operated as far as Ogden
by the Southern Pacific. The witness said
that beginning in February, 1886, there
had been virulent, bitter war of rates be-
tween the Pacific roads lasting up to the
date OF passing the law. When the law
passed the Southern Pacific had readjusted
its rates, diminishing them in many cases,
increasing them in no instance. The COM
petition to be met by the Pacific roads was
of three kinds-sailing vessels around Cape
Horn, the Pacific Mail route, and the Cana
dian Pacific. To bring all of its traffic
down to the level of competing rates would
simply end in the bankruptcy of the rail
road company, that was evident, as an av-
erage of one-half cent per mile would
probably meet the expense of transporta-
ton between San Francisco and the Mis-
souri, river. 1t had paid to convey sugar
East at this rate, as it avoided the neces-
sity of having to haul empty cars from the
West to the East. This rate was much
lower than that made by the Canadian Pa
cific, Pacific Mail and clipper ships, but the
real injury inflicted by the Act had scarcely
had time to develop. If it were enforced,
the effect would be to cause the roads TO
lose more by the reduction of interstate
traffic than the gross earnings amounted to
on all the through traffic.
The Chairman questioned the witness at
some length to learn his reason for fearing
Canadian Pacific competition. Stubs had
acknowledged that its line was very much
longer than the transcontinental lines in
the United States, then how could it make
profit? He wished to see if the witness
was not reasoning as did persons who sup
ported the long and short haul clause
Mr.. Stubs did not know how much of
the rates the steamship lines received or
how much was left for the Canadian Pa
cifc. 1t was a matter of public knowl-
edge that the latter did not have business
enough to make a trainload daily: still
they were obliged to run trains, and it
would cost no more to haul them loaded
than empty, so they could take freight at
rates sufficient to pay for putting it on and
off the cars. They had had sixty
st. Paul. Illustrating the effect
of clipper ship competition, witness
said that barley was carried by
water from San Francisco to New York,
and shipped back to Chicago. The South
ern Pacific charged high local rates on pro-
duce from San Francisco to Nevada points
for the purpose of encouraging local agri-
cultural interests in Nevada, which would
otherwise have been crushed. In explana-
ton of the tifty-cent sugar rate from San
Francisco to the Missouri river, Stubs said
it was question of markets, as well as
transportation competition, and if thew
could have Hawaiian raw sugar refined in
San Francisco and distributed from that
point, instead of letting it 90 by wav of
New York, it would be beneficial for the
roads, for it would develop other traffic in
which they were interested.
Chairman" Having the purpose in
view, as its leading object of building up
manufactures at San Francisco ?n
Witness" And railroads" Continuing,
he said: 1.-THE roads found they must
adopt fifty cent rates on raw sugar.
why must ~ inquired the Chairman.
Witness explained that the producers
could not pay more.
HAWAIIAN producers asked Commits
sioner Schoonmaker. care they Ameri-
can, or German, or English?''
Witness" suppose the idea is to show
that it is Claus Spreckels. That is a mis-
take. He does not control it. There are
several producers, but l cannot tell YOU
who they are" AS to California wine. the
witness did not think there was any truth
in the complaint referred to by the Chair
man, that it was brought East at rate less
than the cost of transportation. Stubs ex-
planned at great length the method of adj
justing local rates, as practiced before the
passage of the law, and endeavored to
show how the law operated TO disturb that
practice. He denied that in making the new
tariff under the law this company adopted
the highest local rate or the through rate.
Witness said the distance over The Union
Pacific and Central Pacific (the shortest
line between San Francisco and the Mis-
souri, river was l ,915 miles.
Morrison wished to know how far San
Francisco sugar would have to travel over
the Canadian Pacific to reach Omaha.
After some calculations witness estimated
the distance to be $500 miles. Sugar. he
said, has gone over the long route at g.
cents per hundred, although his system
| offered to take it at rs cents over the shorter
| route. He saw 10 reason why the Western
roads should not be permitted to make as
low rates as Eastern roads to the Missouri
| river. This, he thought, sufficient an.
swer to the complaint of Eastern sugar re.
tiners They could not get their sugar into
the Western territory.
Commissioner Walker asked witness
what answer he could make to the charge
made that by their systems of rates the
tranScontinentalli lines prevented the growth
of any manufacturing interests on the Pa
cific coast.
Witness said that rates had never been
| made in the interest of any manufacturing
interests. They resulted simply from COM
petition. Business must go. He would
not admit that the system of rates tended
to prevent any development of local manu-
features.
Commissioner Walker-'Do you con-
slider the interests of any particular manu-
featuring interests, or do you look out for
number one ?"
Witness" So far as my relation to the
company is concerned l look out for its
interests, but think an enlightened, I'M
selfish view of the case would require the
company to care for the interests along its
line"
Commissioner Walker referred to the
complaint alleged TO have been made by
California woolgrowers, and asked if il
were possible for them to ship through to
New York.
Witness replied that the general policy
of his company had been to admit com
petition only SO far as it exists. He meant
that from interior points in California they
never made a through rate. Rather than
do so it would be better to give up the
business.
THR ORDER ENLARGED.
WAsurScToN Nav o0th Thu Tpfarsta+o
Commerce Commission has enlarged the
suspensory order in the case of the Union
Pacific and Southern Pacific Railroads, Sc
as to include the Denver and Rio Grande
Company.
NEWS FOR HOPGRowERs.